Gold futures ended lower on Monday as the dollar strengthened against a basket of major currencies as investors focused again on the US reflation trade which dominated in the aftermath of Donald Trump's election as US President in November. Investors will also keep an eye out on a number of US economic reports in the week ahead, including the January producer price index on Tuesday, the January consumer price index and retail sales on Wednesday and housing-related data on Thursday.
Crude oil futures snapped their gaining streak on Monday amid speculation that robust US production has offset OPEC's supply cuts. A forecast by the government showed an expected higher production level from U.S. shale drillers in response to higher prices. US Energy Information Administration (EIA) said that Shale oil output in the US is expected to grow by 79,000 barrels per day by March, taking the overall output levels in the US to 4.83 million bpd.
Copper futures ended higher on Monday as closures of two of the world's biggest mines amplified concerns of a supply shortage. Miners in Chile's BHP Billiton site, the world's largest copper mine, last week walked out over a wage dispute, prompting the firm to announce that it would not meet its upcoming contractual obligations on metals shipments. Meanwhile, an export ban has caused Freeport-McMoRan to cease work in Indonesia after it failed to reach an agreement on a new mining permit with the government.
Technical Level
Gold
Support at 28900 and Resistance at 28250--- 29400.
Traders can trade in a range with strict stop loss and wait for confirmation.
Anything seems will update.
Silver
Support at 42200 and Resistance at 42750
Break and sustain above 42750 will take it to 43300---43800+ mark else could touch its support level if 42200 again.
Fresh selling can be initiated below 42200
Crude oil
Support at 3520 and Resistance at 3620
Looks positive and could touch its resistance level of 3620. Close above 3620 will see further upside rally till 3680---3730 mark else it could test its support level of 3520 again.
Looks weak only below 3520 mark on closing basis.
Copper
Support at 409 and resistance at 415
If unable to breach its resistance level if 415 then we can expect sharp downside panic in it and can touch its support level of 409 and then to 404---400 again.
Fresh buying can be initiated only above 415.00 mark.
Major Economic Data
07:00 P.M PPI m/m: Previous 0.3%, Forecast 0.3%, Actual –??
Impact – Increase in PPI - will have negative impact bullion and positive impact on base metals and dollar index vice – versa.
07:00 P.M Core PPI m/m: Previous 0.2%, Forecast 0.2 %, Actual –??
Impact – Increase in PPI - will have negative impact bullion and positive impact on base metals and dollar index vice – versa.
08.30 P.M Fed Chair Yellen Speaks
08:30 P.M Fed Monetary Policy Report
More will update soon!!
